A firm investing in a foreign country to distribute the products there in creation of
Asset seeking FDI.
Backward vertical FDI.
Forward vertical FDI.
Distribution FDI.
Correct Answer :
C. Forward vertical FDI.
Related Questions
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
The role of women is restricted in
Eastern countries.
Middle East countries.
Traditional Islamic countries.
India.
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesnt consider
Direct payments to farmers are permitted.
Indirect assistance and support to farmers including R & D support by govt. are not permitted
Domestic policies which directly effect on production and trade have to be cut back.
Least developed countries do not need to make any cuts.
Which is the right sequence of a stages of Internationalization
Domestic, Transnational, Global, International, Multinational
Domestic, International, Multinational, Global, Transnational
Domestic, Multinational, International, Transnational, Global
Domestic, International, Transnational, Multinational, Global
General Agreement on Trade in Services will not be applicable to
Services supplied from one country to another cross border supply
Transaction of goods across the border Export Import
Individuals traveling from own country to supply services in another presence of natural persons.
Consumers/firms making use of a service in another country consumption abroad.
By entering into international business, a firm expects improvement in
Marketing.
All spheres of marketing, operation and finance simultaneously.
Any or all spheres of marketing, operation and finance.
Finance only.
CISF pricing includes the following
Commission is paid to the agent involved in the transaction
Cost of the goods exported
Freight & Insurance charges for the goods exported
All of the above
Countries/ regions with huge market size will attract
Market seeking FDI.
Efficiency seeking FDI.
Vertical FDI.
Created assets seeking FDI.
The following statement with respect to culture is false
Culture is enduring.
Culture is changing.
Culture is evolved among the members of a society.
Culture is determined by national boundaries.
Which of the following is an advantage of turnkey projects?
Can earn a return on knowledge asset
Will not create a competitor
Tight control of operations
All the above
Trade Related Investment Measures (TRIMS) doesnt apply for
Measures that affect trade in goods.
Measures that lead to restrictions on quantities.
Discouraging measures that limit a companys imports.
Discouraging measures that limit a companys exports.
Geographical indications specify
Place of origin of goods.
Special characteristics of the product associated with the place of origin.
Place and special characters of the product.
Place or special characters of the product.
When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.
Performa invoice
Purchase order
Sales contact
None of the above
Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Religion of a person affects his/her
attitude towards entrepreneurship.
gifting practices.
use of products.
all of the above.
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
General electric follows ___________ as its international operational strategy
Global
International
Multi-domestic
Transnational
The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
Subsidiary
Joint venture
Strategic International Alliance
License agreement
In international business cheaper alternatives to litigation is/ are
Conciliation.
Arbitration.
Negotiations.
Conciliation and arbitration.
The income level of residents in a country is indicated by
gross national income.
gross domestic product.
per capita gross national income.
per capita gross domestic product.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
B2B sector specific policy of Indian Government is
FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
FDI up to 100%
FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
FDI up to 49%
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
None of these
Wholly owned subsidiary can be set up
as a Greenfield venture.
to acquire an existing firm.
to have products marketed overseas.
to have management is overseas.
No new investment in the host country is created in the case of
Greenfield FDI.
Acquisition.
Horizontal FDI.
Vertical FDI.
The following factors are key drivers of globalisation
Government action, exchange rates, competition and sociodemographic factors.
Market convergence, competition, exchange rates and cost advantages.
Cost advantages, government action, economic cycles and competition.
Market, cost, competition and government policies.
0.Trade Related Investment Measures (TRIMS) doesnt apply for
Measures that lead to restrictions in quantities.
Discouraging measures that limit a companys imports
Discouraging measures that limit a companys exports.
ALL OF THE ABOVE
The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end
American.
Russian.
German.
Japanese.